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Profit
how a business can improve it’s profitability
Reduce variable costs per unit
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chet singh
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Cards (2)
why might reducing variable cost Per unit lead to profitability
Increases
the value added per
unit
customers
do not
notice
a change in
price
Why might reducing variable costs per unit not work
Customers
may notice a
decrease
in product
quality
lower
input costs might mean
lower
quality
inputs
- can
lead
to greater
wastage
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